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Tire Fees
2018 Annual Report


Tire Fees Reports





AS 43.98.025

Description

Alaska charges a fee for tires sold in Alaska for motor vehicles intended for highway use. The fee has two parts:

  • The first part is a $2.50 fee for each new tire.
  • The second part is an additional $5 fee for each new studded tire, or when studs are installed on new or used tires. The studs, called heavy studs, are made of metal and weigh more than 1.1 grams each.

The Department of Revenue’s Tax Division collects tire fees primarily from retail businesses that sell new tires.

Rates

The total fees:

  • New tires without studs – $2.50 per tire.
  • New studded tires – $7.50 per tire.
  • Studs installed on used tires or already purchased new tires – $5 per tire.

Returns

Taxpayers are required to file their tax returns electronically using Revenue Online.

Taxpayers file tax returns and make tax payments quarterly. Returns and payment are due the last day of the calendar month following the last day of the calendar quarter of the sale or installation. Taxpayers may retain 5% of the amount collected, up to $600 per quarter, to cover expenses for collecting and paying the fees.

Exemptions

The following tires and services are exempt if the purchaser provides the tire seller with a certificate of use:

  • Tires and services sold to federal, state, local and foreign government agencies for official use.
  • Tires for resale.
  • Tires designed for highway use to be used on a motor vehicle that is not designed for highway use.

The $2.50 new tire fee does not apply to used tires and certain replacements of defective tires.

Disposition of Revenue

The Tax Division deposits all revenue from tire fees into the General Fund.

History

2003 – The Alaska Legislature enacted the tire fees effective Sept. 26, 2003.

2015 – The Legislature passed Senate Bill 33, which clarified the return filing date as the last day of the calendar month following the last day of the calendar quarter of the sale or installation. In addition, in regard to the 5% of collected fees that the taxpayer may retain to cover expenses associated with collecting and remitting the fees, the cap was reduced from $900 a quarter to $600 a quarter. SB 33 became effective May 12, 2015.




Click here for data with additional years.

  Collections Summary

Fiscal Year

2018 2017 2016 2015

   New Tires (Non-Studded)

$1,057,719 $1,069,875 $1,089,696 $1,133,124

   Studded Tires and Stud Installations

345,010 343,752 379,326 373,883

   Penalties and Interest

4,212 7,592 360 8,798
   Total Tax

$1,406,940

$1,421,219

$1,469,382

$1,515,805



  Filing Information

Fiscal Year

2018 2017 2016 2015

   Number of Returns

257 294 338 297

   Number of Taxpayers

66 75 76 72





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